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The submarine fiber cable market size is forecast to increase by USD 5.93 billion at a CAGR of 13.02% between 2023 and 2028. The market is experiencing significant growth due to the rapid developments in telecommunication networks and the declining installation costs of submarine fiber cables. These factors are driving the demand for submarine fiber cables as they offer higher bandwidth, lower latency, and greater reliability compared to traditional terrestrial cables. However, challenges such as fiber damage caused by human activities and fish attacks continue to pose threats to the market. Wet plant products play a crucial role in the maintenance and repair of submarine fiber cables, ensuring their longevity and optimal performance. Overall, the market is expected to witness steady growth in the coming years, with advancements in technology and increasing investments in undersea infrastructure.
The market is experiencing significant growth due to the increasing demand for high-speed internet connectivity and data traffic. The aging population in developed countries is driving the need for improved telecommunications infrastructure, particularly in automotive manufacturing hubs and furniture production regions. The Chinese government's focus on energy security and island connections is also boosting the market's growth. At the EPC (Engineering, Procurement, and Construction) stage, fiber optics play a crucial role in the production of submarine fiber cables. Adhesive strength is a critical factor in ensuring the durability and reliability of these cables during installation and deployment in deep waters.
Moreover, submarine fiber cables are also essential for low-power applications, such as offshore wind farms and undersea oil and gas platforms. The market is expected to grow further due to the rising demand for dry plant products and the increasing importance of internet traffic in various industries. However, labor unavailability and the complex nature of submarine cable installation pose challenges to market growth. Additionally, the market is witnessing the development of high-voltage cables, which offer improved energy efficiency and reduced cable size.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The consortia segment is estimated to witness significant growth during the forecast period. The market has seen significant investments from consortia, which have been instrumental in the completion of over a hundred projects in the last few decades. These consortia, comprised of equal shareholders, have collectively invested approximately USD 40 - USD 45 billion in the entire submarine cable value chain, including surveying, manufacturing, deployment, testing, operation, and maintenance. This trend is driven by the substantial financial requirements of submarine cable projects, which can cost billions of dollars. However, the market share of consortia investments has been diminishing as large multinational corporations have started establishing their own undersea fiber cable networks.
While consortia continue to support smaller organizations, the increasing dominance of large corporations may impact their market share.
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The consortia segment was valued at USD 4.37 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the Asia Pacific (APAC) region is projected to experience significant growth during the forecast period, driven by various factors. One of the primary factors is the increasing investments in offshore wind farms in the region. With a rising population and improving standards of living, there is a growing demand for energy in APAC. To meet this demand, there is a focus on renewable energy sources, particularly wind energy. China and India are expected to lead the way in wind energy installations in the region.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rapid developments in telecommunication networks is the key driver of the market. Submarine fiber cables, a significant component of undersea communications networks, enable data transfer and facilitate internet access and communication among individuals, corporations, and governments, including military entities. These networks, consisting of a system of cables and additional infrastructure and devices, are integral to telecommunications and transmit approximately 99% of international data transmissions. Stringent regulations govern the installation and maintenance of submarine communication cables to ensure their durability and reliability. The extensive nature of these networks makes them indispensable for a country's development, as they enable seamless and extensive communication between land-based sites. The submarine cable market is driven by the increasing urbanization and the subsequent demand for reliable and high-speed communication infrastructure.
Declining installation costs of submarine fiber cable is the upcoming trend in the market. Submarine cable installation has seen significant cost reductions over the years, primarily due to technological advancements. One of the major cost reductions has been in survey costs, achieved through the implementation of digital methods such as satellite technology and advanced mapping tools. Another cost reduction comes from optimizing cable lengths by utilizing route planning software like MakaiPlan, which analyzes potential obstacles to determine the most efficient cable path. Additionally, the cost of laying cables has decreased due to modern cable-laying vessels equipped with precision technologies and semi-automatic processes, minimizing errors and labor costs. Stringent regulations ensure the reliability and safety of submarine communication cables, making urbanization a significant driver for their increased usage.
Fiber damage caused by human activities and fish attacks is a key challenge affecting the market growth. The market faces various challenges due to the vulnerability of underwater communication infrastructure. Natural calamities, such as earthquakes and hurricanes, pose a significant risk to submarine cables. Additionally, human activities, including fishing and anchoring of boats and ships, as well as oil exploration and power projects, can cause damage to these cables. Unauthorized activities, such as cutting by fishermen and scuba divers to sell the stolen cable in the market, further threaten the integrity of submarine cables. A recent incident in Egypt underscores the severity of the issue, with three individuals arrested for cutting an underwater cable in the port of Alexandria, which provides one-third of all Internet capacity between Europe and Egypt. Stringent regulations are necessary to mitigate these risks and ensure the reliability and security of submarine communication cables.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to increasing internet traffic and the need for inter-country connections. The aging population and urbanization are driving the demand for improved communication infrastructure, leading to an increase in the installation and commissioning of submarine communication cables. Energy security is another key factor fueling the market growth, with offshore oil & gas platforms and offshore wind farms requiring reliable power transmission through submarine high-voltage cables. Construction activities in automotive manufacturing hubs and furniture production centers are also contributing to the market growth. However, production halts due to labor unavailability and stringent regulations can pose challenges to market growth.
Moreover, the market is segmented into submarine communication cables and submarine power cables. Fiber optics are the primary technology used in submarine communication cables, while low-power cables are commonly used in submarine power cables. OICA (International Cable and Connectivity Association) sets the standards for the design, manufacture, and installation of submarine cables. The market is witnessing significant investment from REITs (Real Estate Investment Trusts) and Ott providers to expand their network infrastructure. Submarine cables are also used for island connections and in the telecommunications industry to ensure energy security and efficient data transmission. Additionally, the growth of offshore oil rigs and power stations is expected to further boost the market growth.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.02% |
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Market growth 2024-2028 |
USD 5.93 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.69 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 54% |
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Key countries |
US, China, India, Japan, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Cenergy Holdings SA, Corning Inc., Hengtong Group Co. Ltd., Hexatronic Group AB, HOC, Jiangsu Hengtong Au Optronics Co., Jiangsu Zhongtian Technology Co Ltd, Kflex Cables and Conductors, NEC Corp., Nexans SA, NKT AS, OCC Corp., Prysmian Spa, Qingdao Hanhe Cable Co. Ltd., Sopto Technology Co. Ltd., SSG cable group, Tratos Cavi S.p.A., and VERI CABLE IMPORT AND EXPORT Co. LTD. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Source
7 Market Segmentation by Service Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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